I HATE TO GAMBLE THAT A COMPANY WILL MAKE IT, THE ODDS ARE STACKED AGAINST YOU. BUT IF YOU WANT TO PLAY THE GAME WAIT TILL AFTER A REVERSE SPLIT BECAUSE THE STOCK WILL ALWAYS DROP TO A LOWER LEVEL UNTIL THINGS SETTLE. BUT IF YOU SHORT STOCKS LIKE BBI REV RAD ITS LIKE FREE MONEY:-) YOU ALSO GOT TO WATCH OUT FOR THOSE GUYS PREACHING ITS A GREAT BUY BECAUSE THEY ARE PROBABLY TRYING TO TRAP YOU IN AT A HIGHER LEVEL AND WATCH YOU SELL AT A LOST.
An RS isn't tough to see here since they need to keep a PPS as to remain listed. That's the easy part to see.
Now, how to play it...
Rite Aid has the revenue (check the 10) to justify a listable share price upon an RS. Think about it... RA isn't a non-reporting company with no revenue -- it's a national chain with huge revenues.
Now... My questions for the RS would be: 1) Will the secured CDs scare people away from an RS play? 2) Will RA pay off the CDs over time?